5 Main Types Of Online Course Businesses And How They Work

By Jeff Cobb.  Last Updated on October 26, 2026

TL;DR: Types of Online Course Businesses
An online course business markets and sells online learning to adults or to the organizations they work for. Most fall into one of five types, each with its own buyers, offers, and economics.

– Solo or small business edupreneurs sell their own expertise to individuals and win on personal credibility and marketing
– Training firms sell course catalogs and seats to businesses through longer B2B sales cycles
– Associations sell continuing education and credentials to members, nonmembers, and employers
– Continuing education divisions sell certificates and workforce programs under a university brand
– Extended enterprise programs train a company’s customers and partners, sometimes for free and sometimes as a revenue line
– Identify your type by who pays and what proof they need, then choose a platform built for that type

People talk about “the online course business” as if it were one thing. A fitness coach selling a $200 video course and a university selling a $3,750 professional certificate both run online course businesses. So does a software company that certifies its resellers. They sell to different buyers, earn trust in different ways, and make money on different timelines.

I’ve worked inside more than one of these models. Before I started Learning Revolution, I co-founded a company that built the first learning management system designed for associations. Celisa Steele and I have consulted with associations and other learning businesses through Tagoras for close to two decades. And today I sell six courses of my own on Thinkific as a solo edupreneur.

In this guide, I’ll explain the five main types of online course businesses. For each one, you’ll see who runs it, what it sells, who buys, how it makes money, what the market looks like, and what you need to run one. I’ll also name the platforms that fit each type, so you can move from understanding your model to building it.

What Is an Online Course Business?

An online course business is any person or organization that markets and sells online learning to adult learners or to the organizations that employ them. The learning can be self-paced, live, or a mix. Many businesses bundle it with coaching, community, or a credential.

I leave two groups out of this definition.

Corporate training departments teach their own employees, so they don’t sell anything. Degree programs follow the rules of academic accreditation and financial aid, which work differently from the rest of the market.

Within that definition, I see five distinct types. Here is the quick view before we look at each one in depth.

TypeWho runs itWho buysCore offer
Solo or small business edupreneurConsultants, coaches, authors, practitionersIndividuals paying their own moneyCourses, cohorts, memberships, coaching
Traditional training firmTraining and consulting companiesBusinesses buying for employeesCourse catalogs, licensed content, live training
Trade or professional associationMembership organizationsMembers, nonmembers, employersCE courses, webinars, certificates, credentials
Continuing education divisionUniversities and collegesWorking adults and employersNoncredit certificates and workforce programs
Corporate extended enterpriseProduct companiesCustomers, partners, resellersProduct training and partner certifications

Type #1: Solo or Small Business Edupreneurs

Solo and small business edupreneurs turn their own expertise into learning products. Most are consultants, coaches, authors, speakers, or skilled practitioners such as programmers, designers, musicians, and fitness trainers. Many have never thought of themselves as educators, and even more have never thought of themselves as marketers.

Business profileDetails
Who buysIndividuals who pay with their own money, usually after following the expert for a while
What they sellSelf-paced video courses, cohort courses, memberships, workshops, coaching, and digital downloads
How they make moneyOne-time sales, payment plans, subscriptions, and upsells into higher-priced coaching or consulting
Source of credibilityThe expert’s reputation, results, and content
Biggest challengeBuilding an audience and selling without a sales team

What the Edupreneur Market Looks Like

The barrier to entry is low, so the market is crowded. Anyone with a laptop can launch a course on a weekend, and AI tools now cut the time it takes to draft outlines and workbooks. The result is plenty of supply and buyers who have learned to be skeptical. According to Stan’s State of the Creator Economy 2026, courses sold on Stan averaged $96 per sale in 2025. Creators with fewer than 1,000 followers averaged $89 a month in sales, compared with $1,378 for creators with more than 100,000.

Platform companies are reacting to that maturity. In Thinkific’s second-quarter 2026 results, revenue from its Thinkific Plus customers grew 14% while self-serve revenue fell 1%. The company also described a “strategic focus to move upmarket.” Solo creators still have plenty of good platforms to choose from, though the industry’s growth has shifted toward larger customers.

What You Need to Run an Edupreneur Business

I’ve worked in this model since I launched Learning Revolution in 2008. Deep expertise matters, but an audience matters almost as much. Before building anything, I run ideas through my 3M Model, which checks for real market demand, the means to create the product, and the motivation to keep at it. An email list is the most reliable asset in this model, since it lets you sell without paying for every visitor.

I’d also push edupreneurs to think beyond one low-priced course. My Value Ramp idea applies here. Most of the revenue and impact sits at the higher-touch end of your offers, such as cohorts, group coaching, and small-group programs. For example, a $97 course can introduce buyers to a $2,000 group program, while the course alone rarely pays the bills. My guide on how to sell courses online covers how to build that ladder.

The Right Online Course Platforms for Solo Edupreneurs

Edupreneurs need a course builder inside the platform, built-in checkout, and simple marketing tools. Reporting needs are light, so SCORM rarely matters. Thinkific, which hosts my own courses, is my pick for most course-first experts, and my Thinkific review explains why.

PlatformBest forStarting price
ThinkificCourse-first experts$40/mo
KajabiExperts who want courses, coaching, email, and a website in one tool$143/mo
TeachableBeginners selling a few courses and digital products$29/mo, plus a 7.5% fee
PodiaLow-cost digital products and simple courses$42/mo, plus a 5% fee

Prices are billed annually. My list of the best online course platforms compares more options for this group.

Type #2: Traditional Training Firms

Training firms already sell training, usually to companies, and are moving online or growing what they offer online. Examples include leadership development firms, safety and compliance trainers, IT certification providers, and sales training companies. Many grew up delivering seminars and workshops in person.

I know this model from the inside. From 1997 to 2001, I was a senior vice president at Quisic, which sold online business courses to corporations and universities.

Business profileDetails
Who buysHR, L&D, and department managers buying training for their employees
What they sellOff-the-shelf course catalogs, custom courses, content licensed for a client’s own LMS, virtual classes, and seminars
How they make moneyPer-seat licenses, annual catalog subscriptions, contracts, and custom development fees
Source of credibilityClient lists, case studies, and proof that training changed results
Biggest challengeLong sales cycles and buyers who demand detailed reporting

What the Training Firm Market Looks Like

Companies spend heavily on training, with a growing share going to outside providers. According to Training magazine’s 2025 Training Industry Report, U.S. training expenditures rose 4.9% to $102.8 billion in 2025. Spending on outside products and services grew 29% to $16 billion, which is the slice training firms compete for. The same report put average spending at $874 per learner.

Subscriptions now drive much of the revenue at established firms. FranklinCovey, a public training company, earned $35.2 million of its $59.6 million in revenue from subscriptions in the quarter ending February 28, 2025, according to its quarterly filing. Subscriptions made up about 59% of revenue, and FranklinCovey’s best-known subscription is the All Access Pass to its content library.

One lesson from my consulting work applies here. A good client and the right client are different things. The right corporate buyer has real money at stake, leaders who treat learning as core to the business, and a team that can roll the training out. Training firms that chase every interested company fill their pipeline with deals that never close.

What You Need to Run a Training Firm

  • A catalog. Business buyers want a library of courses they can roll out to different teams, so a single course rarely carries the business.
  • Authoring tools. Many firms build courses in Articulate Storyline or iSpring and export them as SCORM packages, so clients can install them on their own LMS.
  • Group management. Each client needs its own group or branded portal, with managers who can add and track their own people.
  • Someone who sells. B2B deals involve proposals, procurement, and renewals, which take far more selling than a checkout page.

The Right Online Course Platforms for Training Firms

I recommend TalentLMS for small and mid-size firms, since it handles client groups, SCORM, and reports at a price smaller firms can afford. My TalentLMS review covers it in depth.

PlatformBest forStarting price
TalentLMSSmall and mid-size firms selling B2B training$119/mo
LearningCartFirms that sell seats and bulk licenses online$199/mo
LearnWorldsFirms selling to both individuals and businesses$24/mo
LearnUponLarger firms with many client portalsQuote only
ArloFirms that run mostly live and classroom coursesUsage-based plans

My guide to the best learning management systems for small businesses goes deeper on this category.

Type #3: Trade and Professional Associations

Associations are the market I know best. Trade associations have companies as members, such as a state homebuilders association. Professional associations have individuals as members, such as a society for accountants, nurses, or engineers. Education is often one of their biggest sources of revenue beyond membership dues.

Business profileDetails
Who buysMembers, nonmembers at a higher price, and employers buying for their staff
What they sellLive and recorded webinars, on-demand courses for continuing education (CE) credit, certificate programs, certifications, and conferences
How they make moneyPer-course fees, member pricing, bundles, subscriptions to a course library, and certification fees
Source of credibilityThe association’s standing in its profession, its standards, and its credentials
Biggest challengeLimited staff capacity and growing competition from other education providers

What the Association Education Market Looks Like

Associations treat education as a business line more than ever. In our 2026 Strategic Outlook for Association Learning Businesses report, increasing revenue was the most common primary goal for education, chosen by 28% of respondents. Nearly two-thirds said their education offerings are expected to generate revenue that supports the broader organization.

Credential requirements create steady demand. The Project Management Institute, for example, says PMP holders must earn 60 professional development units every three years to keep the credential. Each certified project manager becomes a repeat buyer of continuing education, which is why credentials sit at the center of so many association education businesses.

The constraints are real, though. The top barrier to revenue growth was inadequate marketing or sales capacity, cited by 52.6% of respondents. Another 41.2% pointed to market saturation or increased competition, which includes edupreneurs and training firms selling into the same professions.

Associations hold an advantage those competitors can’t copy. Celisa and I call it Credibility Capital, meaning the standards, credentials, research, and convening power that make an association the trusted source in its field. Associations that build their education around those assets compete well. The ones that sell generic webinars compete on price.

What an Association Needs to Sell Education

  • Relationships with the bodies that approve continuing education credit, plus systems to track credits and issue transcripts
  • Volunteer subject matter experts and staff who can turn their knowledge into courses
  • Member and nonmember pricing, with content that only members can access
  • Integration between the learning platform and the association management system (AMS), plus links to online community platforms such as Higher Logic

The Right Online Course Platforms for Associations

Many course platforms and corporate LMS vendors see associations as an easy market to expand into. In my experience, most of them handle CE poorly. Many don’t know what an AMS is. I recommend starting with providers built for associations, such as BenchPrep, Cadmium Elevate, D2L, OasisLMS, MapleLMS, and TopClass LMS. Each of these demoed at our 2026 Learning Business Summit, where they were also sponsors.

Associations that lack the staff time for a full selection process can start with the free LMS selection resources we publish at Leading Learning.

Type #4: Academic Continuing Education Divisions

Continuing and professional education divisions sit inside colleges and universities but serve adults who aren’t pursuing degrees. Examples include a university’s school of professional studies, an executive education center, and a community college workforce program.

Business profileDetails
Who buysWorking adults changing or advancing careers, employers, and workforce funding programs
What they sellNoncredit certificates, bootcamps, microcredentials, executive education, and professional development courses
How they make moneyProgram tuition, corporate contracts, and custom programs for employers
Source of credibilityThe university brand and its faculty
Biggest challengeMoving at market speed inside an institution built for degree programs

What the Continuing Education Market Looks Like

University online units have become major revenue sources. According to UPCEA’s 2026 benchmarking report, average online enterprise revenue reached $30.5 million in fiscal 2026, compared with $18 million in 2024. Those figures cover online units broadly, so continuing education is part of the total rather than all of it.

Adult learners shop for these programs the way they shop for anything online. In a 2026 UPCEA and Search Influence study of 1,057 adults interested in continuing and online education, 54% used AI tools while deciding, and over half considered three schools or fewer. Divisions that don’t show up in search and AI answers often never make the shortlist.

Prices reflect the university brand. eCornell, Cornell University’s online learning unit, lists certificate programs that retail for $3,750 and run two to three months at four to ten hours a week. That’s far above what most edupreneurs charge for a course on a similar topic.

What a Continuing Education Division Needs

A division needs approval to use the university’s name, instructors who can teach working adults, and a registration and payment process that works for people outside the university. Independence matters most. A division that runs like a separate business can launch programs in weeks, while one tied to campus systems may wait a semester for approvals.

The Right Online Course Platforms for Academic Divisions

SituationTypical setup
The division runs like an independent businessA platform chosen the way a training firm or association would choose one
The division must use the campus LMSCourses in Canvas, Moodle, Brightspace, or Blackboard, with a storefront such as Canvas Catalog
The campus LMS has no storefrontA separate ecommerce layer such as Course Merchant, or the university registration system

Type #5: Corporate Extended Enterprise

Extended enterprise programs train people outside a company’s own walls. Software companies run customer academies, manufacturers train dealers and installers, franchisors train franchisees, and medical device companies train the clinicians who use their products.

Salesforce shows how the free and paid models fit together. Its Trailhead learning platform is free, while a certification exam such as Platform Administrator costs $200 to register, plus $100 for a retake. The free training builds product adoption. The paid credential gives people a reason to finish.

Business profileDetails
Who buysCustomers, channel partners, resellers, and suppliers, or nobody when the training is free
What they sellProduct training, onboarding programs, partner certifications, and paid courses on the company’s field
How they make moneyIndirectly through retention and lower support costs, or directly through course and certification fees
Source of credibilityThe company’s ownership of the product and its official certification
Biggest challengeGetting budget and an executive sponsor inside a company focused on other products

What the Extended Enterprise Market Looks Like

A growing number of companies treat training as a product of its own. The State of Customer Education 2026, a vendor-commissioned study from Absorb Software and Lighthouse Research & Advisory, included 216 organizations that run training as a revenue line. Those organizations named reaching buyers and keeping them as their main challenge.

The same study found that programs selling through three or more channels reported roughly twice the high-return rate of single-channel programs. And 51% of high-return programs offered multiple or tiered certifications, compared with 25% of low-return programs. Treat those numbers as directional, since the sponsor sells customer education software.

What You Need to Run an Extended Enterprise Program

An extended enterprise program needs product experts who can teach, an executive who owns the program, and a budget separate from internal training. The program also needs a platform that can serve outside learners, which most internal corporate LMSes do poorly.

The Right Online Course Platforms for Enterprise Programs

PlatformBest forPricing
DoceboLarge academies serving many outside audiencesQuote only
Absorb LMSMid-size companies sharing or selling customer trainingQuote only
Thought IndustriesCompanies selling training as a product lineQuote only
TalentLMSSmaller programs that need to launch fast$119/mo

How the Five Online Course Business Models Compare

The table below compares the five types on the business mechanics that shape day-to-day work. Notice how the buyer drives everything else, from the sales cycle to the size of a typical sale.

EdupreneurTraining firmAssociationCE divisionExtended enterprise
Buyer decidesAlone, often in daysThrough a company, often over monthsAlone or through an employerAlone or through an employerThrough the company relationship
Main growth leverAudience and email listSales team and renewalsMember reach and credentialsSearch visibility and employer dealsProduct adoption and partner networks
Example price point$96 average course sale on Stan$874 spent per learner by U.S. companiesNo reliable public benchmark$3,750 for an eCornell certificate$200 for a Salesforce certification exam
Hardest constraintMarketing timeLong sales cyclesStaff capacityInstitutional speedInternal budget

The price points come from the sources cited in each section above. Association prices vary too widely by profession for a meaningful average, so I haven’t listed one.

How to Tell Which Type of Online Course Business You Run

Most people can place themselves in a minute. If you’re unsure, answer these four questions in order.

Step 1: Identify Who Pays

Individuals paying with a personal card point to the edupreneur model. A company paying for its employees points to a training firm, and members paying different prices point to an association.

Step 2: Identify What Buyers Need as Proof

Ask what makes a buyer trust you enough to pay. A personal reputation, a client list, a professional credential, a university brand, and product ownership each map to a different type.

Step 3: List Your Formats and Tracking Needs

List the formats you sell and any reporting buyers expect, such as completions, scores, or CE credits. Heavy tracking needs usually mean you’ve moved beyond the edupreneur model, even if you started there.

Step 4: Pick the Type That Will Earn Most of Your Revenue

Many businesses sit between two types, such as a coach who sells courses to individuals and licenses programs to companies. Choose the type that will bring in most of your revenue over the next two years, and let that type guide your platform and your marketing. Celisa and I talk through how different learning business models make money in episode 371 of the Leading Learning Podcast, which can help with that call.

Once you know your type, my free online course platform selection tool can suggest platforms that fit, and my online course pricing calculator helps you test price points before launch.

Frequently Asked Questions About Online Course Businesses

What are the types of online course businesses?

Most online course businesses fall into five types. These are solo or small business edupreneurs, traditional training firms, trade and professional associations, academic continuing education divisions, and corporate extended enterprise programs. Each type sells to a different buyer, earns trust in a different way, and needs different features from its platform.

What is an edupreneur?

An edupreneur is an expert who builds a business around teaching what they know, usually through online courses, cohorts, coaching, and memberships. Most edupreneurs are consultants, coaches, authors, or skilled practitioners who sell directly to individuals and rely on their own reputation and marketing to attract buyers.

How do online course businesses make money?

The revenue model depends on the type. Edupreneurs earn from course sales, subscriptions, and coaching upsells, while training firms sell seats and licenses to companies. Associations charge per course with member pricing. Continuing education divisions charge program tuition, and extended enterprise programs earn through retention or certification fees.

What is the difference between a training firm and an edupreneur?

An edupreneur usually sells their own expertise to individuals who buy on their own. A training firm sells course catalogs and seats to companies that buy for their employees. Training firms face longer sales cycles and need group management, SCORM support, and detailed reporting that most edupreneurs never use.

Why do associations sell online courses?

Associations sell online courses to serve their professions and to earn revenue beyond membership dues. Many offer continuing education credits that members need to keep a license or certification. Our 2026 Strategic Outlook survey found more associations named revenue growth as their top education goal than any other aim.

What is extended enterprise learning?

Extended enterprise learning is training a company delivers to people outside the organization, such as customers, partners, resellers, and suppliers. Some companies offer it free to improve retention and cut support costs. Others sell courses and certifications, which turns the program into a revenue line of its own.

Which type of online course business is easiest to start?

The solo edupreneur model is the easiest to start, since it needs only expertise, an offer, and a course platform. It’s also the most crowded. Success depends on building an audience and an email list, and on adding higher-priced offers such as cohorts or coaching over time.

Can an online course business change types?

Yes, many do. A coach may start by selling courses to individuals and shift toward a training firm model once companies start buying seats. When that happens, platform needs change too, so plan for group management, reporting, and invoicing before corporate deals become most of your revenue.

Know Your Type of Online Course Business

The fitness coach, the university, and the software company from the start of this guide all sell online learning. Their buyers, offers, and economics have little in common, which is why advice written for one so often fails the others.

My recommendation is to name your type before you make your next big decision, whether that’s pricing, hiring, marketing, or choosing a platform. Then read advice written for your model. If you’re an edupreneur, start with my Teachable, Kajabi, and LearnWorlds reviews. If you’re moving toward selling to companies, start with my guide to learning management systems.

Head shot of Learning Revolution Founder Jeff Cobb

Jeff Cobb, Founder of Learning Revolution

Jeff Cobb is an expert in online education and the business of adult lifelong learning. Over the past 20+ years he has built a thriving career based on that expertise – as an entrepreneur, a consultant, an author, and a speaker. Learning Revolution is a place where Jeff curates tips, insights, and resources to help you build a thriving expertise-based business. Learn more about Jeff Cobb here.

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